Acting on behalf of a private London based investor, Ryden has purchased the Heritable Interest in 183-187 High Street, Arbroath, Scotland for £432,500 reflecting a net initial yield of 8.6%.
The retail unit, which extends to approx. 3,000 sq ft, sits within the main pedestrianised section of the High Street and is let in its entirety to Farmfoods Limited until March 2029 at a passing rent of £38,700 pa.
Farmfoods have occupied the property for over 25 years and recently completed a lease extension, showing their commitment to the location.
Derek Archer, Investment Associate at Ryden, commented on the deal:
“Despite the current challenges within the retail sector, selective opportunities are throwing up excellent value.
“With 9.5 years to a 5A1 covenant, similar income streams in other sectors are not generating such attractive returns.”
Ryden represented the purchaser in this transaction, whilst Mason Owen and Crichton Property Consultancy acted on behalf of a private seller.